While the payment brings relief, the Pandamatenga Commercial Farmers Association warns that prolonged delays forced producers into costly borrowing, eroding profits and disrupting production
BONGANI MALUNGA
Farmers have finally received full payment of the outstanding P271 million owed for last year’s deliveries, bringing closure to a prolonged financial strain that has weighed heavily on the agricultural sector. The final P65 million has now been disbursed, marking the end of nearly a year-long wait for many producers.
While welcoming the development, farmers have been quick to caution government against a repeat of such delays, warning that the consequences have already left lasting scars on their operations.
MUCH NEEDED RELIEF
The Pandamatenga Commercial Farmers Association acknowledged the role played by the government and financial institutions in resolving the impasse, noting that the release of funds offers much-needed relief. However, the association stressed that the timing of the payments, nearly 12 months after initial deliveries, came at a significant cost to farmers.
During the delay, many producers were forced to operate under severe cash flow constraints, relying on loans and other financing mechanisms to sustain operations. This led to mounting interest costs and financial pressure that cannot be recovered, effectively eroding already thin profit margins.
UNSUSTAINABLE
The association noted that farmers had to carry the burden of financing their operations for an extended period, which is not sustainable.
The ripple effects of the delayed payments have been far-reaching. Some farmers scaled back production, while others struggled to procure inputs such as seed, fertiliser and fuel in time for the next planting cycle.
The association emphasised that timely and predictable payments are not merely administrative obligations but a cornerstone of a functional agricultural system. Without them, farmers face heightened risk, reduced output and diminished capacity to contribute to national food security.
FINANCING AND INTEREST COSTS
“These payments come nearly 12 months after initial deliveries, during which farmers had to carry significant financing and interest costs while operating under severe cash flow pressure. These are costs that cannot be recovered,” the association remarked.
The farmers group additionally noted that; “timely and reliable payment systems are not just administrative, they are critical to protecting farmers, sustaining production, and ensuring national food security.”
Despite the challenges, the association reaffirmed its commitment to working collaboratively with the government and other stakeholders.